HMRC reviews Bitcoin taxation

HM Revenue & Customs (HMRC) is reviewing taxation on the rapidly expanding Bitcoin industry, according to the Financial Times.

The news comes amid growing frustration by traders in the virtual currency at the 20% value added tax levied on the purchase of coins.

They feel this makes their businesses uncompetitive against foreign rivals, with the likes of Hugh Halford Thompson- founder of Bitcoin trading website QuickBitcoin, threatening to relocate his business overseas.

The Financial Times said HMRC was yet to make a final decision on tax treatment as it ‘listens’ to the industry, which has seen the value of its market rocket from $150 million to $10 billion over the last year.

‘We have held constructive meetings with stakeholders, but this is a complex issue, and we will continue to listen to arguments for alternative VAT treatments under existing VAT law,’ a HMRC spokesperson told the paper.

We use cookies to give you the best experience on our website. You can continue to use the website and we'll assume that you are happy to receive cookies. If you would like to, you can find out more about cookies and managing them at any time here. This site is for Professional Investors only, please read our Risk Disclosure Notice for Citywire’s general investment warnings

We use cookies to improve your experience. By your continued use of this site you accept such use. To change your settings please see our policy.